Why Is Berry Global Group Stock Falling Today?
Portfolio Pulse from Nabaparna Bhattacharya
Berry Global Group, Inc. (NYSE:BERY) reported Q2 adjusted earnings per share of $1.95, surpassing estimates of $1.91, but its quarterly revenues of $3.076 billion fell short of the expected $3.155 billion. The company experienced a 6% year-over-year net sales decrease, primarily due to a 5% negative impact from lower resin prices and a 2% decline in volumes. Operating income dropped to $208 million from $301 million, largely due to goodwill write-offs in the Consumer Packaging International segment. Despite these challenges, Berry reaffirmed its 2024 adjusted EPS outlook of $7.35-$7.85 and expects cash flow from operations of $1.35 billion-$1.45 billion, with free cash flow of $800 million-$900 million. The company also declared a quarterly cash dividend of $0.275 per share. BERY shares fell by 2.82% to $59.53.
May 09, 2024 | 5:33 pm
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Berry Global Group, Inc. reported higher-than-expected Q2 earnings but missed revenue forecasts, with a notable decrease in net sales and operating income. The company remains optimistic about its 2024 outlook and declared a quarterly dividend.
Despite beating EPS estimates, the revenue miss and the year-over-year decline in net sales and operating income are likely to negatively impact investor sentiment in the short term. The decrease in share price by 2.82% reflects immediate market reaction to these mixed results. However, the reaffirmation of the 2024 EPS outlook and the declaration of a dividend may provide some support to the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100